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Ammonia For Cost-Effective Storage And Distribution

Of Large Quantities Of Renewable Energy

Dr Camel Makhloufi

ENGIE Lab CRIGEN

E-Fuel Key Program co-manager & Power-2-X R&D Program Leader

19th May 2021

14th Energy Storage World Forum

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19th May 2021

167,000employees

€60.6 billionin revenue

250 000 kmof distribution grid worldwide

37 000 kmof transport grid worldwide

58 GWof natural gas capacity

25 GWof renewable capacity

105 GWof installed power capacity

2

ENGIE × Green Hydrogen

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4GW of Hydrogen production capacity

700 km of H2 pipeline & 1 TWh storage capacity

100 refueling stations

ENGIE 2030 target

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Hydrogen Lab @ ENGIE Lab CRIGEN

Working all along the value chain

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19th May 2021

• Hybrid Wind and PV cumulative full load hours –Source VTT

Electrofuels allows new energy corridors and energy

supply diversification

• Main fossil fuel

exporters to Europe • Lowest PV auction bid

worldwide in 2018 and

2019

Hydrogen and electrofuels are key for new energy corridors and energy supply diversification through international trading

New energy corridor with countries showing electricity economic potential lower than 30€/MWh with cumulative load hours higher than

5000 hours are possible!

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Key Insights

• Estimated European potential of offshore wind resource rangesbetween 600 and 1,350 GW for a cost of 50 to 65€/MWh.

• 78% of electrons planned for green hydrogen comes from offshorewind!

• By 2030, the potential of offshore wind could possibly representbetween 80% and 180% of the EU’s total electricity demand.

• Higher technical potential is located at >20 km, this creates highassociated transmission over-costs if undersea cables are used.

In a longer term vision, Electrofuels may promote far

offshore wind energy

Technical resource potential at the end of 2030 by country (2017)

Economically attractive potential in 2030 by sea basin (WindEurope)-2017

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EU’s electrolysis pipeline by source of electricity supply –Source: IHS Markit 2021

19th May 2021

Electrofuels will support RE penetration through long

term storage and dispatch, reducing curtailment

Need for energy storage in provision of ancillary services –Source: ENTSO-E, Roland Berger 2017

EU countries with large shares of intermittent renewables and low interconnectioncapacity will heavily rely on the adoption of energy storage solutions.For instance, Germany relies on 40 GWh of pumped-storage power as the only seasonalstorage solution. So far, the government was compensating RES plants for curtailedenergy. Compensation payments amounted to 478M€ in 2017 alone.

Curtailed renewable electricity in Germany – Source: Tractebel ENGIE 2018

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GRAAL

6

19th May 2021

A possible role of ammonia in the future European green

energy system

Ammonia shipping infrastructure, including a heat map of liquid ammonia carriers and

existing ammonia port facilities – Source: The Royal Society, 2020

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Long distance hydrogen transportation : case study in

Morocco

— Four different hydrogen carriers are considered (Liquid hydrogen, LOHC, NH3,

e-methane) : hydrogenated, transported and dehydrogenated except for SNG

— Electricity is produced from PV or from hybrid PV and wind electrical sourcing

in three different city in Morocco : Essaouira, Agadir and Tarfaya

— Discharged energy cost are calculated for 3 time frame : 2030,2040 and 2050

respectively for 5, 10 and 20 TWh equivalent

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Electricity cost and profile in Morocco

2030 2040 2050

PV 42 €/MWh 32 €/MWh 23 €/MWh

Wind 42 €/MWh 34/MWh 29/MWh

Grid >100 €/MWh >100 €/MWh >100 €/MWh

ELY 450€/kW 300€/kW 300€/kW

Sources :

• PV : "Current and Future cost of

photovoltaics" Fraunhofer ISE

• Eolien : 2009 NREL "Wind LCOE" for IEA,

"Forecasting wind energy cost ans cost

drivers" IEA Wind + USDoE June 2016

• Grid : Enerdata, internal estimate

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Electrofuels production cost – Various solutions and

no clear winner

250

200

150

100

50

0

€/M

Wh

LH2 LSNG NH3 DBT

PV - 2030

200

150

100

50

0

€/M

Wh

LH2 LSNG NH3 DBT

Hybrid PV + wind - 2030

Y. Ishimoto and al.

2015.

D. Teichmann and

al., 2012.

M. Eypasch et

al.,2017.

M. Reuß, 2017.

M. Appl, 2012

0

50

100

150

200

LH2 LSNG NH3 DBT

200

150

100

50

0

€/M

Wh

Hybrid PV + wind - 2050

❑ H2 production cost is predominant with strong effect of hybridation on levelized cost of discharge energy

❑ Apparently, LH2 and NH3 are the most promising. Results must be considered with caution since maturity levels of these various

solutions are very different

❑ While hybridation allows high renewable load factor improving economics; E-Fuel synthesis loop flexibility and cracking

technologies remain to be studied and improved.

10ENGIE – do not use without authorization

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Green ammonia competitivity suffers from lower

flexibility of converters and compressors

From Micro to Mega How the green ammonia concept adapts Ammonia = Hydrogen 2.0 Conference | Aug 2019 | Rhys Tucker and Karan Baggathyssenkrupp Industrial Solutions

Current and future role of Haber–Bosch ammonia in a carbon-free energy landscape. Collin Smith, Alfred K. Hil and Laura Torrente-Murciano 28th December 2019

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ARENHA : from power to ammonia to energy discharge

Flexible ammonia synthesis at lower pressure

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under

grant agreement No 862482.

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Ammonia cracking technologies are needed to unleash

the full potential of ammonia as energy vector

Hydrogen refuelling station

Fuel cell and turbine for power generation (Genset

data centers, shipping, power plants)

On board generation for Internal combustion engine

(truck, ships)

Decentralized cracking : onsite or on board Centralized cracking using gas infrastructure

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Centralized cracking for large scale H2 recovery from

ammonia – Example of a 200ton/day Hydrogen plant

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19th May 2021

Decentralized Ammonia cracker : on-site and on-board

Hydrogen generator

❑ Simpler system to generate pure hydrogen locally in a

single step at the purity required for Hydrogen vehicles

(ISO 14687-2)

❑ System producing up to several tons per day of

hydrogen from ammonia with lower footprint

❑ Improved economics with higher efficiency due to higher

conversion and low operation temperature compared to

commercial solutions.

❑ Experimental validation demonstrates almost full

conversion of NH3, even at 400 ͦC, and in all the cases

beyond equilibrium. Typical cracker operates at close to

700°C.

❑ First demonstrator being built by ENGIE Lab CRIGEN

and TU/Eindhoven - Operation startup : end 2021

❑ Commercialization in the near future by H2SITE

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On-board hydrogen generation for heavy transport

FC power H2 storage required NH3 equivalent

Truck class 8 (line haul)

300-450kW

79kg H2 at 350 bar / 80 tanks 8m3 occupied / 2,7tons

650L NH3 at 8,6 bar

Train 400kW 120 kg at 350 bar / 130 tank13 m3 occupied / 4,3 tons

1m3 at 8,6 bar

Mining truck 0,9 – 3MW ≈1000kg at 350 bar/ 700 tank70m3 occupied/ 23 ton

8 m3 at 8,6 bar

Shipping Up to 80 MW

* Considering 12kg/100km per class 8 truck, rough hypothesis for mining truck

ENGIE – do not use without authorization 19th May 202116

Thanks for yourattention

Any questions

BESS Optimal CyclingAging vs Revenues

Tancredi PerainoAkuo Energy : Project Manager - Hybrid Power Systems

Agenda

1. Akuo Energy

2. Optimal Cycling

3. Battery Degradation: main factors and aging model

4. Revenues and Penalties for Grid Connected BESS

5. Cycling modelling

6. Optimisation Algorithm

7. Merchant Application

8. Conclusion

Akuo Energy

Founded in 2007, Akuo develops worldwide renewable energy projects

Development Contracts & Financing Construction Operation

In 2014, Akuo launched the development & sale of renewable energy

solutions to third parties.

Solar GEM Storage GEM Solar Tiles Floating Solar Hydrogen

Optimal Cycling

Optimal Cycling

Battery Degradation

BESS Performances

BESS Revenues

Replacement Strategy

How?

Elaborate the optimal BESS (or

hybrid) dispatch strategy to

maximise the project’s NPV

Why?

BESS will rapidly pass from basic

operation to concurrent bidding

and participation in multiple

markets

Battery Degradation

Aging Model:

DOD SOC C-rate Temperature

Cycle Analysis Lifetime Estimation

𝐿𝐶 =

𝑗=1

𝐾𝑛𝑗𝑁𝑓𝑗

Ncycle(𝑆𝑜𝐶,𝐷𝑜𝐷) =𝐶𝑓𝑎𝑑𝑒

𝑎 ∗ 𝑒−𝑏∗𝑆𝑂𝐶 ∗ 𝐷𝑜𝐷𝑐

2

Degradation ModelMiner’s rule

Life consumption

# of cycles to failure

Stress Factors:

BESS Revenue Sources

Capacity MarketBalancing Authorities remunerating grid -connected assets to ensure capacity [$/MW/h]

Ancillary Services MarketGrid Operators contracting fast-response and regulating reserve [$/MW-MWh-mileage]

Merchant MarketHourly or sub-hourly day-ahead and intraday markets for energy trade [$/MWh]

Renewable ArbitrageAvoid curtailment and optimise the economical valorisation of energy [$/MWh]

Grid Support MarketsGrid operator remunerating for spinning reserve, non-spin or contingency reserve.[$/MWh]

0%

20%

40%

60%

80%

100%

0

20

40

60

80

100

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

SO

C [

%]

BESS D

isp

atc

h A

ve

rag

e P

ow

er

[MW

]

BESS Dispatch Example

Merchant Solar Energy Merchant Energy Storage Spinning Reserve Primay Res. Up

Primary Res Down Merchant Charging SOC

Cycling Modelling

Cycle Economics

𝐶𝑜𝑠𝑡𝑐𝑦𝑐𝑙𝑒 [$] = 𝐿𝐶𝑐𝑦𝑐𝑙𝑒 ∗ 𝐶𝑖𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 +𝑛

𝑁 𝐶𝑂&𝑀1 + 𝑟 𝑛

+𝑛

𝑁 𝐶𝑐ℎ𝑎𝑟𝑔𝑖𝑛𝑔

1 + 𝑟 𝑛+

𝐶𝑑𝑖𝑠𝑝𝑜𝑠𝑎𝑙

1 + 𝑟 𝑁+1

Revenuecycle $ = 𝑛

𝑁𝑅𝑐𝑎𝑝𝑎𝑐𝑖𝑡𝑦

(1 + 𝑟)𝑛+

𝑛

𝑁𝑅𝑑𝑖𝑠𝑐ℎ𝑎𝑟𝑔𝑖𝑛𝑔

(1 + 𝑟)𝑛+

𝑛

𝑁𝑅𝑎𝑛𝑐𝑖𝑙𝑙𝑎𝑟𝑦

1 + 𝑟 𝑛+

𝑛

𝑁𝑅𝑔𝑟𝑖𝑑 𝑠𝑢𝑝𝑝𝑜𝑟𝑡

1 + 𝑟 𝑛+

𝑛

𝑁𝑅𝑟𝑤𝑒 𝑟𝑒𝑣𝑎𝑙𝑜𝑟𝑖𝑠𝑎𝑡𝑖𝑜𝑛1 + 𝑟 𝑛

𝑃𝑟𝑜𝑓𝑖𝑡𝑐𝑦𝑐𝑙𝑒 $ = 𝑅𝑒𝑣𝑒𝑛𝑢𝑒𝑐𝑦𝑐𝑙𝑒 − 𝐶𝑜𝑠𝑡𝑐𝑦𝑐𝑙𝑒

-5000

0

5000

10000

15000

20000

25000

-1000

-500

0

500

1000

1500

2000

2500

3000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Su

m o

f H

ou

rly P

roit [

€]

Ho

urly P

rofit

[€]

Hourly Profit - Strategy 1 Hourly Profit - Strategy 2

Sum of Hourly Profit - Strategy 1 Sum of Hourly Profit - Strategy 2

Optimisation Problem

The optimization problem aims at maximize the total NPV of the profit expected

from the BESS or hybrid system by evaluating the best trade off between the

multiple markets 'revenues and the BESS degradation

ConstraintsTaxes - Technical Constraints - Market Functioning & Regulation – Grid Operator Requirements

Outputs

• Project Economics• Strategy Selection• BESS Performances

Inputs

• Markets’ Prices Forecast

• Design & Economics• Technical Inputs• RWE Forecast

Cycle Optimisation Problem

Objective Function

m𝑎𝑥 𝑃𝑟𝑜𝑓𝑖𝑡𝑑𝑎𝑦 =

=

𝑡=1

𝑛

𝑃𝑟𝑜𝑓𝑖𝑡𝑡 𝑃𝑆1 , … , 𝑃𝑆3 , 𝑆𝑂𝐶, 𝐷𝑜𝐷, 𝑃𝑐ℎ

Decision Variable

𝑃𝑜𝑤𝑒𝑟 𝑓𝑜𝑟 𝑒𝑎𝑐ℎ 𝑠𝑒𝑟𝑣𝑖𝑐𝑒𝑠: 𝑃𝑆1 , … , 𝑃𝑆3𝑃𝑜𝑤𝑒𝑟 𝑓𝑜𝑟 𝑐ℎ𝑎𝑟𝑔𝑖𝑛𝑔: 𝑃𝑐ℎ𝑃𝑜𝑤𝑒𝑟 𝑓𝑟𝑜𝑚 𝑅𝑊𝐸: 𝑃𝑅𝑊𝐸

Outputs

𝑃𝑟𝑜𝑓𝑖𝑡𝑙𝑖𝑓𝑒𝑡𝑖𝑚𝑒 =

𝑑=1

𝑙𝑖𝑓𝑒𝑡𝑖𝑚𝑒

𝑃𝑟𝑜𝑓𝑖𝑡𝑑𝑎𝑦

Merchant Application

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

-

2000 000

4000 000

6000 000

8000 000

10000 000

12000 000

14000 000

16000 000

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Life

Co

nsu

mp

tio

n [

%]

Cu

mu

lative

Pro

fit

[$]

STRATEGY COMPARISON

Profit 1 Profit 2 Profit 3 Profit 4 LC 1 LC 2 LC 3 LC 4

CAISO Market:

Day Ahead & Real Time Energy Market (15 min time step)• Day-ahead M. → bids from D-7 days until D-1

• Real Time M. → from 1:00 p.m. of D-1 until 1h15 before the trading hour

The strategy 3 presents the best trade off between the battery

consumption and the cumulated revenue

Conclusion

Build and update the BESS dispatch and operational model considering the battery

degradation as a costModel

Integrate revenues streams, constraints and calendar of the local electricity marketRevenue

Develop and update a smart EMS capable of accurate forecast and optimal decision

makingEMS

Screen all the markets to assess their maturity and estimate the shortfalls and market delay for optimal prospection strategyMarket

Thank you for your attention!